subject: The Effective And Economical Aspects Of Education [print this page] Knowledge economy refers to the use of knowledge technologies to generate economic benefits as well as job creation. A knowledge economy is that knowledge and education which can be treated as a business product like innovative intellectual products or a productive asset. In 1966 Peter drucker introduced knowledge economy in the book The Effective Executive. Drucker explained the difference between the manual worker and knowledge worker. According to him the manual worker works with his hands and produces goods or services. In distinction, a knowledge worker works with his or her head not hands, and produces ideas, knowledge, and information. In knowledge economy, knowledge leads to wealth for creation. Knowledge is widely used as a product or a tool for economic prosperity.
There is a rapid growth in education, business, economy and its importance is also recognized by the government, academics and practitioners. Education, knowledge and economy. The policy of government related to education is to improve schools, knowledge economy consumerism and marketisation in education; citizenship, globalization and fair trade as they relate to education; philanthropy and education; skills development. The knowledge has become a major factor in education. Education for the knowledge economy refers to the worlds bank work with developing countries to promote the highly skillful, flexible human capital needed to compete in global markets. It is an effort that influences a countrys entire education system.
In the 20th century technological developments have transformed the majority of wealth-creating work from physically-based to "knowledge-based. Technology and knowledge is now the key to production. Due to the mobility of information and the global work force, knowledge and expertise can be transported to any part of the world instantly. The prerequisite need of the environment for the growth of a knowledge economy is an education method and it is also the demand of world labor market. In 2004 Indian UGC's Higher Education Information Systems Project was launched which aims at National Qualification Framework, Graduates Registration & Information System, Knowledge Repository and Expertise & Facilities Database etc. Its assured that these initiatives will really help UGC to design a higher education system that is receptive to the demands of a Knowledge Economy.
The access to formal education gives a way to the growth of knowledge economies. India has a powerful education system with more than one million schools to impart primary, secondary and higher secondary education. There are a number of institutions providing accredited certificate and diploma courses on almost all professional disciplines and a higher education system with over 300 Universities and 45,000 Colleges. All study and research being demanded by the world labor market are available through this wide network of educational institutions.
Knowledge economies solely cannot depend on formal education and it can be only sustained when it is assured through lifelong learning systems. Lifelong learning systems contain all modus operandi of education like formal/non-formal, conventional classroom based and technology mediated leaner centric open distance learning etc. Indian education policies also pay emphasis on Lifelong Learning. It considered Lifelong Education as the treasured goal of the educational process which allows housewives, agricultural and industrial workers and professionals to continue the education of their choice at their convenience.
